May
06
Stuck with a house we can’t afford?
By
My husband and I were considering putting our house for sale so we could try and find something with a lower note. We are starting to struggle with our note and don’t want to get in too deep. We bought it for $127,000…which is what is was appraised at, of course. We still owe $123,000. And now, the appraisal district only has it appraised at $101,500. And from what I understand, we cannot refinance either, because of that. I do not understand how a brand new home in a brand new subdivision can depriciate in value that much, that fast. We don’t know what to do…any advice would be very much appreciated.
Sell and Rent Back
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7 Comments
May 9th, 2010 at 5:58 am
If you can, hire a professional appraiser. They will almost always be higher than the appraisal district on the value of the home because they perform a much more thorough analysis. You can also dispute the appraisal districts assessment but that may result in higher taxes should they raise the value. Good luck & I hope you find a solution to your dilema.
May 9th, 2010 at 10:52 pm
it depreciated because of newer sales
of a lower amount.
I suggest you get 2 jobs for 1 yr
and pay the mortgage like this;
on the first, pay 1/2 of it
on the 15, pay the second 1/2 of it
————
then, with your 2nd job, for 1-2 yrs
max, pay on the 1st, a 2nd check
for the same amount but endorse the
check [all of this check towards the
principle amount]
and state the same thing, on the
15th, from your 2nd job’s pay,
all of this check towards principle only]
————in 1 yr, you will owe 16k less.
by end of year 2, 32k less totally.
–by the end of year 3, way less.
then, give up your 2nd job.
–your payments will be easy to make
and by then, your house will have
gone back up to its original value.
May 11th, 2010 at 12:54 am
LOL….I guess you don’t watch or read the news much babe.
The economy is in the sh*tter and part of the problem is people who have bought homes they can’t afford. Because banks loaned way more money than the people can afford to buy their homes using b*llsh*t loans to make it seem like the dummy buyers could afford it when they really couldn’t.
You are most likely one of those people. You’re now reaping what you sow. By playing dumb and naive, you will probably find your house in foreclosure and the American taxpayers will have to pay for it. The 4K equity you have is gone and your credit it ruined, but you’re allowed to walk free without any punishment for being so blind. That’s criminal.
You and the banks are totally responsible and are exactly where you ought to be. Dire straights. I hope you learned your lesson to pay attention to the world around you just a little bit more.
Have a great day!
May 11th, 2010 at 9:29 pm
If the value of your home actually is $101,500, you’d have to make up the difference between the purchase price and the payoff, or between the amount they’ll refinance and the payoff.
But the tax assessed value isn’t necessarily the market value. Most counties use a TAV that’s lower than the actual market value. Call a local real estate agent and ask for a comparable market analysis. They can check the sales price of homes in your area and give you an estimate of the expected sales price.
It’s not just your subdivision. Property all over the US has declined in value. And the problem is really that it was artifically inflated by high demand and low rates for a few years. The value of any property is what someone will pay for it. For a while, people were willing to pay a lot for property, much more than a reasonable amount, and many got “designer” loans to do it…adjustable rates, interest only, and loans that let you choose from 3 payments, some of which would create negative amortization, meaning the payment was less than the interest amount, so the rest of the interet was added to the balance. So now those ARM loans are adjusting, and the payments are too much for people. There’s a flood of homes available, and supply and demand steps in to determine the values. When you owe more than the value of the property, we call that upsidedown. And that’s probably where you are, but it may not be as bad as you think.
May 15th, 2010 at 4:39 am
Is your rate adjusting now? That makes a big difference. If not, figure out in your life what has changed since you got it that puts you in a bit of a pickle. If it is adjusting, call your bank and negotiate something with them.
May 16th, 2010 at 4:11 pm
Appraisal district estimate are always really low. What you should do is consult with a lender to see if you have any options. Ask them to run a ‘comp search’. This will give you a better idea.
I would check for lenders on
Good luck!
May 17th, 2010 at 12:45 pm
if you are serious about keeping your home I just had my mortgage modified!! I went to a company called American Modification Agency. I had lost my job and was out of work for 4 months , single parent of 2 children this agency helped me to get a lower rate and now i am back on my feet…. I am tellin you because someone told me and i wanted to keep this house i call a home!! There is a way. You can call my modification processor tomorrow after 9 am she will help you!!1
Her nameis Jerisha Goodwine- 516-506-4104
Give it a shot!! best wishes